Molycorp slates $200 million in notes to help fund rebuilding
Molycorp announced on Tuesday that it will issue $200 million in notes to help finance the rebuilding of its mining operations in Mountain Pass, Calif., about 15 miles south of Primm.
The notes would come due in five years. The interest rate has not been set.
The company would have the option of issuing $30 million more in notes if investor demand supports it.
Molycorp is rebuilding the mining facility to produce rare earth ores, which are used in a variety of high-tech products ranging from hybrid cars to cell phones to guided bombs.
In an unrelated move, some of the company's large shareholders will sell 10 million shares.
Investment firms bought the mine in September 2008 for $82 million, and took it public last July. Since then, the stock has soared to the point the company now has a market capitalization of $4.9 billion. At Thursday's closing price, the block of shares was worth $512.9 million. None of the proceeds will go to the company.
